The international news agency Reuters recalled the crisis in the Dubai real estate market in 2008 and asked experts about the likelihood of its recurrence in the near future.
Ronan Hannan, director of the consulting company Proven Partners: “Dubai’s vulnerability to correction lies in its dependence on foreign capital, especially from China and Russia.”
“In the first quarter of 2023, Russians were largest home buyers, but dropped to third place, overtaken by Indians and British. Even if demand from Russia declines, demand from Egypt, Lebanon, Pakistan and Turkey will grow and stabilize the market,” says Hakim Abdeljaouad, managing director of Kroll’s Valuation Advisory Services.
Knight Frank expects price increases in premium areas: “Housing prices in Palm Jumeirah, Emirates Hills and Jumeirah Bay Island will increase by 5% in 2024.” Apartments and houses outside these super-expensive areas will rise in price by 3.5% in 2024.”
A senior official at one of Dubai’s major developers predicts a decline. Property values may decline by 10-15% over the next few years.
Another source close to the situation said that at least one major local landlord is trying to sell several hotel properties, including one at the luxury Palm Jumeirah resort, to reduce risks to its portfolio.
Between However, just 13,000 properties are projected to be delivered annually in Dubai over the next six years, down significantly from the 30,000 properties over the past 15 years, suggesting a shortage that could support demand, Faisal said Durrani is a partner of the Knight Frank agency and the head of the sales department in the Middle East and North Africa.
To summarize, analysts note that the risks of a new crisis are minimal, because all developers and financial institutions have learned lessons from the previous crisis and are “well prepared.” In addition, Dubai’s economic performance remains strong, with Dubai’s non-resources businesses in the process of vigorous expansion.
Published: 02/01/2024